Session 2

10:00 - 12:30

Netherlands II

Social Aspects of Life Innovation on the European and Japanese Societies
10:00 Prof. Masahiko Yoshii, Kobe University“Overview of the Lost Two Decades and the Ageing Society in Japan”
10:10 Prof. Naoki Mitani, Kobe University“Ageing and Employment Policies in Japan”
10:40 Prof. Yuki Sekine, Kobe University“Social Security in an Ageing Society: Challenges and Responses”
11:10 Ms. Laure Batut, European Economic and Social Committee“Social Innovation and Active Ageing”
Discussant: Mr. Georgi Stoev, European Economic and Social Committee

The 3rd Kobe University Brussels European Centre Symposium was held at Thon Hotel EU in Brussels on December 6, entitled “GreenInnovation and Life Innovation – for sustainable growth and society by Japan-EU collaboration.” Session 2 was a workshop titled “Social
Aspects of Life Innovation on the European and Japanese Societies” held from 10:00 to 12:30.
This workshop was organized in continuation to the conference on the ageing society, jointly held by Kobe University, EUIJ-Kansai,
and the European Economic and Social Committee (EESC) in Brussels in March 2012. The aim of the workshop is to discuss positive
aspects of an ageing society including the advancement of assistive technology and the new market needs instead of the burden onsocial welfare or the downside of the labor market.
The main themes of session 2 were social welfare systems and the labor market which Kobe University and EUIJ-Kansai have been
studying for years in collaboration with EESC. With more than twenty researchers and experts in attendance, the overview of changes
in the labor market and social security policy in Japan was presented, which was followed by the recent trends such as increase in contractual employment and long-term unemployment within younger generation. The session was concluded with a shared understandingthat we should explore economic opportunities and newly emerging needs in the ageing society and need to revitalize the younger generation. The session was followed by an active exchange of opinions and constructive discussion. The assistive technology for ageing
society was discussed in session 4.

9

until 65 years old for all mandatory retirees has signifi-Prof. Dr. Masahiko Yoshii

Dean of the Graduate School of Economics, KobeUniversity

cantly raised the employment rate of older workers, but
it has brought the debate over the trade-off of employment between older workers and youth. Youth employment situation has deteriorated sharply after the Bubble
Burst, especially late 1990’s-early 2000’s. With the stag-“Overview of the Lost Two Decades and theAgeing Society in Japan”

nating economic growth, the dualism of the Japanese

As Japanese GDP of 470 trillion

and lower wages. Consequently, the increase in non-yen in 2011 was almost the same

regular employment among youth results in fewer mar-level as that of 1990-91, we canriage and further decline in fertility rate. Under the Japa-

say that Japan cannot recovernese employment system, the lump-sum hiring practices

from the lost two decades, andof new school-leavers and placement by school had

its future is still not bright. The

played important roles for relatively better performance

stagnated situation, of course,of the Japanese youth labor market. The government iscomes mainly from the economic

trying to restore these traditional institutions and to im-

reasons: demand and supply sides. But, the decreasing

plement new measures to cope with increasing jobless-and ageing demographic structure is further complicat-

ness and employment instability among youth.

labor market has proceeded. Typically, the non-regular
employment provides with fewer opportunities of training

ing the problem. For example, a huge increase of thesocial security costs becomes more and more difficult
to be sustained by the decreasing labor force. Nonetheless, we would like to focus on the encouraging side of
the ageing society. Developing nursing technologies will

Prof. Yuki Sekine

Graduate School of Law, Kobe University

create a promising industry. More and more elder people spend their ample money for travelling abroad. We
should turn our attention to these aspects, thinking up
new ideas to overcome negative aspects of the ageing“Social Security in an Ageing Society:
Challenges and Responses”

society in Japan, and be a promoter of these new andJapan’s population has reachedcreative ideas and technologies.

an ageing pace that is threatening
its future well-being by inflatingsocial security costs to an extent

Prof. Dr. Naoki Mitani

Graduate School of Economics, Kobe University

increasingly difficult to control.
Successive governments’ strategies have mainly focused on
active ageing policies, counting“Ageing and Employment Policies in Japan”

on Japan’s large pool of healthy and motivated “seniorcitizens”, extending their employment possibilities andJapan is challenged to prepare

accordingly, seeking their extended financial contribu-

for the rapid ageing and declin-tion to social security costs. In recent years, public anding population. Given the highacademic debates on the concept of an « age-free »labor force participation rate of thesociety, which is not only new in our country, but also

elderly, Japan has made effortslargely contradicts our traditional employment practices,to promote employment for older

are also increasing. On the other hand, the trade-offs

workers by encouraging employ-

between older and younger generations, be it on theirers to retain older workers longer,

share of the labour market, or of social security duties

through the extension of mandatory retirement age orand rights, constitute important concerns on tackling

continued employment since mid-1970’s. The recent

the challenges of ageing. The newest government has

regulatory measure to extend continued employment

adopted in 2012 a series of reforms under the frame-10work of a “Global Reform on Tax and Social Security”,

panies and still protected in law. However it is declining

which aim at regulating labour market practices and so-in quality. Companies are investing less in on-the-job

cial security costs sharing that have affected the young-training. Wages are lower and essentially quality is not

er generations over the last years, as well as securing

what it was.

new ways for financing the future needs of our society

Leading to polarisation of labour market

with a concern to the burden put on the current and fu-

LDP has not performed well since winning power inture youth.

2009. However, under Prime Minister Noda, good reforms have been made to protect interim workers: Themaximum duration of 5 years has been regulated forMs. Laure Batut

European Economic and Social Committee

fixed term labour contracts.
Social security challenges
Obvious challenges to control finance without raiding
contributions or cutting benefits. Solving the problem,“Social Innovation and Active Ageing”“Working poor”, needs to share the burden between
young and old. Old people’s health costs have been in-

Challenges for labour law and so-

creased and may lead to ending of certain subsidies andcial security law

increase of VAT (probably to 8% or 10%). Income tax

Economic stagnation in aftermath

may also be raised to 45% and inheritance tax includesof 2 lost decades is still affecting

fewer exemptions.

social security – pension fund in-Japanese health care requires equal access and should

vestment return.

focus on prevention. When you reach 40 you begin

Employment promotion policiescontributions for elderly health care. When you reach 65

focusing on older workers as pen-

you start benefitting; 50% funded from insured and 50%sion age raised to 65 – had an effect on youth employ-from the government. In terms of workers’ insurance,ment. Early retirement has never been a policy choicecasual workers are not covered. The system was neverin Japan. Ratio for youth unemployment relatively is low

designed for this kind of worker.

and only recently has become a policy issue. Psycho-

Increasing ageing population is a rough challenge but

logical/sociological aspects in youth unemployment in-

could be a chance for economy if considered as active

clude high psychological pressure education/labour mar-part of the whole society.

ket and rigidities in labour market that affect companies
and labour law. Youth feel there is no second chance as
the perception of gloomy prospects has come up due toaging society. Moreover, it appears that easy access tocasual work in the service sector and comfortable shortterm-work are also among them.
Leading to un/under employed youth
The labour law reform in late 80s/90s managed workforce which caused business demands for deregulation
and blame for this phenomena. Two important laws havebeen introduced and contributed to precarious labour
market: 1. Interim labour law; This has led to interim
workers replacing regular workers as shown by statistics. Measures taken to avoid this have not worked.
2. Law on the stability of employment in 1947; This wasto prohibit employment agency activities, but slowly waswatered down. This has all led to an under-protected
pool of workers.
Japan’s lifetime employment was once praised as a key
to its success, while it is still accepted in the bigger com-11